HW 7 - 1,000,000 11/1/11 Investment in LTD stock 40,000,000...

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Jonathan Franco ACCT 311 HW #7 1. Double declining balance depreciation: 2 x (1/8) = 25% per year Year Beg. Book value Depreciation Accum. depreciation End book value 2011 160000 (.25 x 160000) = 40000 40000 120000 2012 120000 (.25 x 120000) = 30000 70000 90000 2013 90000 (.25 x 90000) = 22500 92500 67500 2014 67500 (.25 x 67500) = 16875 109375 50625 Straight line depreciation: (50625 – 30625) / 4 yrs. = $5000 per year Year Beg. Book value Depreciation Accum. depreciation End book value 2015 50625 5000 114375 45625 2016 45625 5000 119375 40625 2017 40625 5000 124375 35625 2018 35625 5000 129375 30625 2. 3/2/11 Investment in Platinum Gauge stock 31,000,000 Cash 31,000,000 4/12/11 Investment in Zenith Wholesale Bonds 20,000,000 Cash 20,000,000 6/18/11 Cash 2,000,000 Investment revenue (Platinum) 2,000,000 10/15/11 Cash 1,000,000 Investment revenue (Zenith) 1,000,000 10/16/11 Cash 21,000,000 Investment in Revenue 20,000,000 Gain on sale
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Unformatted text preview: 1,000,000 11/1/11 Investment in LTD stock 40,000,000 Cash 40,000,000 12/31/11 Net unrealized loss (LTD) – OCI 3,000,000 [(500,000 shares x $7/share) - $40,000,000] Fair value adjustment 3, 000,000 Fair value adjustment 1,000,000 Net unrealized gain (Platinum) – Income statement 1,000,000 1/23/12 Cash ($32 x 500,000) 16,000,000 Investment in Platinum Gauge stock ($31 x 500,000) 15,500,000 Gain on sale 500,000 3/1/12 Cash ($76/share x 500,000 shares) 38,000,000 Loss on sale (40,000,000 – 38,000,000) 2,000,000 Jonathan Franco ACCT 311 HW #7 Investment in LTD 40,000,000 Other income (losses) Interest & Dividend 3,000,000 Gain (loss) on sale of investments 1,000,000 Net income xxxxxxxxx Other comprehensive income Net unrealized investment gains (losses) 2,000,000...
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This note was uploaded on 03/12/2012 for the course ACCT 211 taught by Professor Kamlet during the Spring '08 term at Binghamton University.

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HW 7 - 1,000,000 11/1/11 Investment in LTD stock 40,000,000...

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